Why Hiring Licensed and Insured Contractors Is Essential 

Contractors working on a roof

As a business owner, you will occasionally need to make repairs to keep your business and property safe and hazard-free. While it may seem tempting and less expensive to do a DIY project or hire an unlicensed contractor for these repairs, these shortcuts are not worth the cost in the long run. Here are some of the many reasons why only a licensed and insured contractor should complete your projects.

Why Not Just Do the Work Yourself?Carpenter working outside

Quality work: Licensed and insured contractors get the job right the first time. Obtaining the license for their specialty trade requires training, demonstrating the required skills and pursuing continuing education to maintain that license.

Lower costs in the long term: Licensed and insured contractors often get better prices on materials, such as paint, lumber, tools and equipment, than what you can get at a lumberyard or a hardware store. Also, when you do repairs or projects yourself, the work may not be completely correct or durable, leading you to pay more to fix your mistakes or address the same problem again.

Credibility: Licensed and insured contractors know what to look for and how to address repairs adequately and safely. They care about their work and rely on good reviews and referrals.

Property protection: If you repair something incorrectly — such as a handrail that doesn’t provide adequate support for someone who needs it, causing them to fall — you are liable for the consequences.

Specialized tools and equipment: Licensed and insured contractors likely have tools and equipment you don’t have (or you don’t have experience with). These tools may be needed to get the job done correctly and safely.

Note: If you assume a contractor is licensed and insured to work, you could be mistaken. When in doubt, ask! Require proof of their current insurance and a copy of their license before signing the work contract.

Why Do Contractors Need to Be Licensed?Contractors working on the roof

  1. Licensing means they have trained for the job and have a minimum level of competency in their field of expertise (aka they’ve passed relevant tests, filled out required state forms, obtained insurance, and paid application fees).
  2. Permits may be needed to ensure a project is up to code and legal.
  3. Licensed contractors provide you with a signed legal contract. They are likely to take responsibility if something goes wrong because ignoring issues could result in the loss of their license.
Disclaimer: Not all states require contractors to be licensed. Even if you live a state where this is not a requirement, we still highly recommend you hire a licensed contractor to complete any work.

Why Should Contractors Be Insured?

  1. Should any liability claims arise related to the job performed, their liability insurance will protect you, your property and any workers on-site.
  2. Protection: If your contractor is properly insured, you won’t be held legally and financially responsible for any such issues that might arise.

The next time you need to hire a contractor, confirm they are both licensed in the trade they are practicing and adequately insured. Taking these precautions ensures the best outcome for you, your business and your property.

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